3 Reasons for Ethereum's Rise: Bernstein Wrote

Analysts from the asset management company Bernstein suggested in their latest assessment shared with clients that there are three reasons for the recent rise of Ethereum.

"Stablecoins and tokenization are gaining momentum"

Bernstein states that the first of these is the momentum gained by the tokenization of stablecoins and securities, noting that "Stripe's acquisition of the stablecoin platform Bridge for $1.1 billion and Meta's recent initiatives regarding stablecoins are causing attention to shift back to fundamental blockchain infrastructures. Ethereum is becoming a critical platform for this growth trend, hosting 51% of the total stablecoin supply." On the other hand, according to Bernstein, Ethereum is the most dominant platform for the tokenization of real-world assets. Analysts say, "Traditional finance giants like BlackRock and Franklin Templeton are accelerating their efforts related to the tokenization of real-world assets, which have a market value of over $22 billion, (RWA). Again, it seems that Ethereum is the most dominant platform in this area."

"Layer 2 networks support ETH demand"

Bernstein, on the other hand, argues the opposite of Standard Chartered's view, which sees Layer 2 networks as almost a threat to Ethereum. According to the company's analysts, Ethereum Layer 2 is taking on an increasingly important role as the institutional crypto infrastructure. The analysts also noted that Robinhood's initial acquisition of WonderFi, an Ethereum Layer 2 network, could mean that brokerage firms will be able to offer tokenized stocks on their own chains going forward. They added that these Layer 2 networks, which use ETH for transaction fees and payments, support the demand for ETH and reinforce Ethereum's position as the leading platform for enterprise smart contract usage.

"ETH short positions closed"

According to the report on the subject, another reason for the rise in ETH is the closing of short (short) positions. Analysts say, "In the last 12 to 18 months, many crypto hedge funds have sold ETH and taken long (long) positions in cryptocurrencies like BTC and SOL, but as the ecosystem expands beyond the theme of value storage to narratives like institutional blockchain usage and stablecoin payments, it is becoming increasingly difficult to maintain the expectation that ETH will fall behind."

ETH rose above 2,700 dollars for the first time in three months yesterday. The second largest cryptocurrency by market value gained nearly 50% in the last week. At the time of the news release, ETH was trading at 2,590 dollars.

Published: May 14, 2025 21:14